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Apr 29, 2009 at 07:05 AM

Asset Clearing Account

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I want to know the use of asset clearing account. I am using it for Cash Sales.

When i post Retirement with revenue (without customer), entry passed is:

Accumlated Depn A/c

Asset Sale Clearing A/c (Sales Price)

Loss on sale FA

To Asset A/c (Cost of asset)

Then i do FBCJ for cash reciept where i pass entry as:

Cash A/c.... Dr

To Asset Sale Clearing A/c

Is this right ?